On October 19, in Beijing, Cheng Hehong, the Chief Lawyer of the China Securities Regulatory Commission (CSRC), stated that the Commission will collaborate with various parties to leverage the roles of market participants, enhance root governance, and collectively advance investor protection and the high-quality development of capital markets.
Cheng made these remarks during the main forum of the 2024 Financial Street Forum, which focused on “Driving High-Quality Development of Capital Markets through Comprehensive Deepening of Capital Market Reform.”
“Investors are the foundation of the market,” Cheng emphasized. In the modern capital market system, the creation, exercise, and realization of investor rights are intricately linked to the activities of key market participants, including securities issuers, listed companies, securities and futures institutions, and fund managers, whether those activities result in benefits or losses.
He pointed out that securities issuers must adhere to principles of honesty and integrity, as these values are critical to safeguarding investor rights in capital market activities. Listed companies should enhance this foundation by delivering actual investment returns to protect investor interests. Meanwhile, securities and futures institutions need to conduct their business prudently according to the law, providing high-quality market services for investor protection. Additionally, fund managers should prioritize investors with utmost diligence, strictly fulfilling their fiduciary responsibilities to safeguard investor rights. Market intermediaries, such as sponsors, certified public accountants, and securities lawyers, must act as professional guardians of investor rights. He noted that investors also have mutual obligations to act with integrity and engage in fair trading, particularly avoiding market manipulation and insider trading that may harm other investors’ legal rights.
Cheng also highlighted that relevant securities and futures market institutions must take their responsibilities seriously in addressing investor grievances, diligently handling complaints made through the 12386 service platform or other channels. “We must make a genuine effort to resolve issues and effectively address conflicts,” he stressed, underscoring the importance of practical measures to protect investor interests.
Enhancing the quality of investor services and upholding their legal rights are crucial for the overall benefit and long-term development of capital markets. Cheng believes that protecting investor rights requires legally regulating the activities of these key entities while fully harnessing their positive roles. “Only by doing so can we proactively prevent issues and strengthen legal protections for investors, especially small and medium-sized investors, from the ground up,” he concluded.
